I'm in love with Charles Handy...and the idea of bonsai businesses
Thursday, February 28, 2008 at 5:00PM So I'm listening to NPR in the car yesterday (as one does when one is of a certain age and has become totally flippin' allergic to commercials). Marketplace was on (btw, don't you love the names of the people on NPR? I had a friend who named his goldfish after them. The ones that survived longest were Bob Edwards and Snik Paprikash. I think Mandalite Del Barco met an untimely demise and subsequent ride in the porcelain funeral-home fun-swirl machine).
Charles Handy (who I must admit I never heard of before--he's the founder of the London Business School and a professor at Claremont Graduate University's Drucker School of Business) came on to do a little sidebar story and I fell ass over teakettle in love. I was also jealous. Because he NAILED it much better than I could:
Bigger isn't always better for business.
You've got to read it in his own words...but he's basically saying that he can't figure out why businesses always want to grow, grow, grow. And I totally agree. Great quotes:
If I were to visit a symphony orchestra and ask them about their growth plans for the future, how would they respond? They would talk about their plans to extend their repertoire and to bring their work to new audiences, not about increasing the number of violinists. The same holds true for a school or a hospital. Once they get to the appropriate size, they strive to be better not bigger.
This makes so much sense. Think about it. Why are there so many startups out there? Why did the founders of your company start the company in the first place? I bet it was because the alternatives sucked. Either no one was fixing a very specific problem for specific people (think MySpace vs Facebook), or some huge company was solving it in a half-assed way (think Word vs Google Docs).
And then what happens? "Wow! This is working! Let's do more features! Let's get more customers! Lets drive market share by pushing more people into the funnel! Once they show up, let's expand what we are doing for them!"
And voila, you're on the path to creating something that works well sometimes for some people--and you're opening the door to another little company that can come in and sweep up behind you.
And I can hear you: what about growth? scale? profits?
What about great examples like Google and Facebook? They're HUGE.
My answers: What if your company and product could be and stay the best at solving that problem you identified? What if you worked on it until you absolutely nailed it? What then? No one could sneak in behind you doing it 'better.' You intellectual capital would be impossible to reproduce. You would get to know your customers better than anyone else could ever know them.
And what about the examples? Well, apologies to buddies of mine who work at Facebook, but it's getting really, really top-heavy in my opinion. Why was it so popular when it launched? I think it had to do with the benefits of being inside the protected four walls of universities. I think it 'nailed' (bad choice of words, perhaps) the goals and needs of a very specific target audience. It wasn't screaming with ads. There weren't thousands of new applications on there. It was protected from the grabby reach of grownups who want to sell crap.
And now? Yup. Insanely popular. Great for contacts in many ways. Very good UI, which keeps people from the freedom that leads to sparkly bright pink with orange text myspace pages. But. But but but. Obviously, there's a tipping point somewhere in there. Let's see what happens, shall we?
And as for Google, exactly how many of the features they have do you use? Maps? Sure. Shopping? Maybe. Wanna know how many more there are? Well, see for yourself.
By the way, how many of you out there find the Google search results really awesome? Not me. Great for speed and convenience, but I have a REALLY hard time believing that this is the best way to present the glory of the world of information that is available at our fingertips. It's the best way to show links that have won the 'game' of SEO. So we're back to the grabby grownups who sell stuff again. They are SO annoying.
Another lovely quote form the Handy segment:
An executive in the project I am working on at the Drucker School in Claremont, California calls the business he created a "bonsai" organization, after those small Japanese trees. These trees need to be trimmed and reshaped, but they don't grow beyond their ordained size.
So, once you start itching to grow, because you're bored or feeling all imperialistic and stuff, what do you do? Create a forest, but don't grow your little perfect jewel into a silly-looking redwood.
And his final point:
...if we aren't careful, organizations can become the prisons for our souls.
Yup. You grow and grow and grow your business, and you end up with exactly the kind of corporate atmosphere that you probably ran screaming from in the first place. And sadness ensues.
All quotes from here: http://marketplace.publicradio.org/display/web/2008/02/25/bonsai_business/
all things fabulous 




